Time Warner Cable Leads Sector Rally
Cable Stocks Up On Basic Subscriber Hopes
Mike Farrell -- Multichannel News, 4/29/2009 6:02:34 PM
Strong first-quarter results from Time Warner Cable and a 168-point gain in the Dow Jones Industrial Average appeared to bring a needed lift to cable stocks, as several MSO's finished Wednesday well in the black.
Time Warner Cable, which added 36,000 basic customers in the first quarter led the charge, rising 14.2% ($3.87) per share to $31.12 each.
Perhaps in anticipation that Time Warner Cable's results were an indicator of better things to come for the rest of the sector, investors flocked to MSO stocks, driving the sector up in the high single digits.
Following TWC was Cablevision Systems, up $1.23 each (7.8%) to $16.96 per share; Comcast, up $1.05 each (7.4%) to $15.24; and Mediacom, up 30 cents each (6.3%) to $5.05.
Satellite TV stocks also rose for the day, but not as dramatically as cable. Dish Network finished Wednesday at $13.26 per share, up 44 cents (3.4%) and DirecTV Group rose 61 cents each (2.5%) to $25.35.
Programming stocks also shared in the gains, led by The Walt Disney Co., up $1.50 each (7.7%) to $21.01 per share; News Corp., up 59 cents (7%) to $8.99; and Discovery Communications, up $1.04 (5.7%) to $19.27.
Time Warner Inc., which also reported first-quarter earnings on Wednesday, rose slightly - 21 cents or 1% -- to $21.98 per share.
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